If you haven’t read economist Arthur Laffer’s Op Ed in today’s Wall Street Journal you should. Mr. Laffer explains how the Federal Reserves unprecedented expansion of the money supply could lead to rising inflation and interest rates that would make the ’70s look benign: Rahm Emanuel was only giving voice to widespread political wisdom when […]
Economy
WSJ: Obama’s Jobs Numbers Are Pure Fiction
William McGurn has must read Op Ed in today Wall Street Journal detailing the fiction of the Obama Administration’s jobs “saved or created” statistics: Tony Fratto is envious. Mr. Fratto was a colleague of mine in the Bush administration, and as a senior member of the White House communications shop, he knows just how difficult […]
Unemployment Hits 9.4%
The unemployment rate rose to 9.4 percent in May, its highest rate since July 1983, up from 8.9 percent in April: WASHINGTON (Reuters) – U.S. employers cut 345,000 jobs last month, the fewest since September and far less than forecast, according to a government report on Friday that was the most definitive evidence the economy’s […]
Bernanke’s Deficit Warning
There’s been a fair bit of buzz about Federal Reserve Chairman Ben Bernanke’s remarks about the need for deficit reduction during his testimony before Congress yesterday. Many commentators are interpreting Chairman Bernanke’s as bad news for Obamanomics and are arguing that deficit fears will force him to scale back his spending agenda. I disagree. I […]
Were Healthy Banks Forced Forced to Surrender Ownership Stakes to Government?
Were Healthy Banks Forced Forced to Surrender Ownership Stakes to Government? It’s question that needs to be answered… From reading this CNSNews.com piece it would seem at least a few “healthy” banks were forced into surrendering ownership stakes to the government: Last October, then-Treasury Secretary Henry Paulson ordered nine banks that the Treasury Department described […]
Tim Geithner is a Laughingstock in China, Too
Ouch, Treasury Secretary Tim Geithner who has become pretty much a permanent punch line here is apparently a laughingstock in China too (emphasis mine): U.S. Treasury Secretary Timothy Geithner on Monday reassured the Chinese government that its huge holdings of dollar assets are safe and reaffirmed his faith in a strong U.S. currency. A major […]
Poll Question: Is the U.S. Economy Headed for a Recovery or a ‘Dead Cat Bounce’?
Ok folks, here’s the 64 trillion dollar question for you… [poll id=”14″] I’m leaning toward dead cat bounce for various reasons… In short all the money the Federal Reserve and the Federal Government are pumping into the economy will have a positive effect and we will see GDP rebound in the short term. In the […]
Democrats Considering a National Sales Tax?
It looks like the cats out of the bag… With the Federal Government now borrowing nearly 50 cents of every dollar spent it looks like the Obama Administration and Democrats in Congress are considering a national sales tax or “Value Added Tax” (VAT) to pay for their out of control spending: With budget deficits soaring […]
Dead People Get Stimulus Checks???
Ever the model of inefficiency and incompetence the Federal Government is apparently sending dead people stimulus checks.
Barack Obama: U.S. Long-Term Debt Load ‘Unsustainable’
From Bloomberg News: May 14 (Bloomberg) — President Barack Obama, calling current deficit spending “unsustainable,” warned of skyrocketing interest rates for consumers if the U.S. continues to finance government by borrowing from other countries. “We can’t keep on just borrowing from China,” Obama said at a town-hall meeting in Rio Rancho, New Mexico, outside Albuquerque. […]
AP: Stimulus not Stimulating
The AP’s Matt Apuzzo yesterday examined Vice President Joe Biden’s first quarterly report of the Stimulus plan and found the picture to a bit more cloudy than the White House claims: Capturing the full effect of the stimulus at this early stage is difficult, but the administration has set high bars for success. In championing […]
Mortgage Cramdown Bill Dies in Senate
Barack Obama’s economic policy suffered a setback yesterday when a bill that would have allowed bankruptcy judges to force lenders to adjust the principal on mortgages failed in the Senate. The bill received 45 votes, 6 short of the 51 needed for passage… A dozen Democrats joined Republicans in opposing it: For the second time […]
Obama’s Tax Cut May Include a Rude Surprise for Some Taxpayers
Millions of taxpayers could be in for a rude surprise next spring thanks to Pres. Obama’s “Making Work Pay” tax credit: WASHINGTON (Map, News) – Millions of Americans enjoying their small windfall from President Barack Obama’s “Making Work Pay” tax credit are in for an unpleasant surprise next spring. The government is going to want […]
Barack Obama On The Deficit: I Didn’t Do It…
Barack Obama’s ‘It wasn’t me’ protestations about the ballooning federal deficit are so patently false even the Associated Press is calling him on it: WASHINGTON (AP) – “That wasn’t me,” President Barack Obama said on his 100th day in office, disclaiming responsibility for the huge budget deficit waiting for him on Day One. It actually […]
TARP Price Tag Could Reach $2.9 Trillion?
CNSNews has a rather frightening report on the Special Inspector General for the Troubled Asset Relief Program’s report to congress. In short the report says that although Congress limited the Treasury Dept. to spending only $700 billion on TARP the program’s partnerships with the Federal Reserve and the Federal Deposit Insurance Corporation could bring the […]